Interpump is also tapping into the Danfoss reservoir to strengthen its position as a market leader in hydraulics. An acquisition that Interpump Group’s president, Fulvio Montipò, has referred to as the most significant of Interpump Group’s industrial story.
Interpump Group and Danfoss White Drive Motors & Steering
According to the Dane Company “Since Danfoss announced the acquisition of Eaton Hydraulics last year, the transaction has been subject to the usual closing conditions and regulatory approvals. Danfoss is now establishing and preparing to sell a business unit – White Drive Motors & Steering – in an effort to obtain regulatory approvals from the European Commission and the U.S. Department of Justice. This must be done to ensure the maintenance of fair competitive levels and is, therefore, a prerequisite for obtaining the regulatory approvals necessary to close the acquisition of Eaton Hydraulics. The new business unit will be effective February 1, 2021, and will include operations and products at three Danfoss locations in Hopkinsville, Kentucky, U.S.; Wroclaw, Poland; and Parchim, Germany. In addition, after closing the Eaton Hydraulics acquisition, the new business is expected to also include these product lines from Eaton Hydraulics: two product lines from Shawnee, Oklahoma, U.S.; and one from Eden Prairie, Minnesota, U.S. These product lines will be moved, along with some equipment from Eaton’s plant in Searcy, Arkansas, U.S. All together, this includes approximately 800 employees.”
Interpump Group says
Interpump Group announces the signing of a binding agreement for the purchase of the White Drive Motors & Steering business unit from the Danfoss Group.The closing of the transaction is expected in the fourth quarter of 2021, following Danfoss’ closing of the acquisition of Eaton Corporation’s Hydraulics business.The White Drive Motors and Steering business unit includes three production sites: Hopkinsville (Kentucky, USA), Parchim (Germany) and Wroclaw (Poland).The acquisition envisages the addition of three production lines in the United States, that will be moved from Eaton Corporation’s Hydraulics facilities to the Hopkinsville plant, and one additional production line in China. Total sales expected for FY2021 should be slightly above 200 million euro, with EBITDA of approximately 45 million euro.The price for the transaction, to be paid in cash at closing, will be based on an enterprise value of 230 million euro, plus a variable part (currently estimated at 40 million euro) as a function of EBITDA at the time of closing (extended to the entire year on a proportional basis).The closing of this transaction is subject to the approval of certain regulatory authorities, including pending approvals from the EU Commission, the U.S. Department of Justice, and the Conselho Administrativo de Defesa Econômica in Brazil.
Chairman of Interpump Group Fulvio Montipò remarked: “This acquisition, the most significant in Interpump’s history, will expand our product offering to include orbital motors and steering systems, reinforcing our role as a global player in hydraulics”.